EFFECT OF WORKING CAPITAL AND SALES ON THE LEVEL OF PROFITABILITY ON THE CV. ALAM JAYA PEMATANG BANDAR

Authors

Wico Jontarudi Tarigan
Mahaitin H Sinaga
Rosita Manawari Girsang Faculty of Economics, Simalungun University, North Sumatra, Indonesia
Sri Martina Faculty of Economics, Simalungun University, North Sumatra, Indonesia

Keywords:

Working Capital, Sales, Profitability, analysis

Abstract

The purpose of this research is to find out the effect of working capital and sales on the level of profitability. This research is quantitative deriftive research. The analytical methods used in this study are the T test, the F Test, the double linear regression analysis test, the determination coefficient test (R2), the Normality Test, the Autocorrelation Test, the Multicollinearity Test, the Heteroskedasticity Test. Results from the study showed that working capital (X1) and Sales (X2) positively affect profitability (Y) on CV. Alam Jaya Pematang Bandar. Where the value of the t table < t calculated (2,364 < 2,863) and the adjusted figure R square is 0.688 or 68.8% variable profitability can be explained by working capital and sales variables. The remaining 31.2% were affected or explained by other variables not included in the study.

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Published

2022-03-21

How to Cite

Wico Jontarudi Tarigan, Mahaitin H Sinaga, Rosita Manawari Girsang, & Sri Martina. (2022). EFFECT OF WORKING CAPITAL AND SALES ON THE LEVEL OF PROFITABILITY ON THE CV. ALAM JAYA PEMATANG BANDAR. European Journal of Research Development and Sustainability, 3(3), 17-22. Retrieved from https://scholarzest.com/index.php/ejrds/article/view/1955